Aekyung Chemical Acquires LG Chem Subsidiary

Recently, Aekyung Chemical, a subsidiary of South Korea's Aekyung Holdings, which is engaged in the chemicals business, announced that the company has acquired VPCHEM, a subsidiary of LG Chem that produces and sells plasticizers in Vietnam. After acquiring VPCHEM, Aekyung Chemical's annual plasticizer production capacity will increase from 550,000 tons to 600,000 tons.

Aekyung Chemical plans to produce environmentally friendly plasticizers for the European and American markets at its Korean plant and multifunctional plasticizers that can be widely sold at its plants in China and Vietnam. In addition, the company said it looks forward to creating synergies in areas such as material sourcing and technology sharing.

Aekyung Chemical said that starting from 2023, the plasticizer market is expected to grow at an average annual rate of 2.6% in the next 10 years. In particular, Vietnam's demand for specialty plasticizers is increasing, and its average annual growth rate is expected to reach 3.7%.